Go to top of page

Financial position

This section analyses ARPANSA's assets used to conduct its operations and the operating liabilities incurred as a result. for the year ended 2020. Employee-related information is disclosed in the People and Relationships section.

Note 2.1: Financial assets

Note 2.1A: Cash and cash equivalents

2020

2019

$

$

Cash in special accounts

1,145,258

1,314,930

Cash on hand or on deposit

46,970

31,161

Total cash and cash equivalents

1,192,228

1,346,091

The closing balance of Cash in special accounts does not include any amounts held in trust: (nil in 2019).

Accounting policy

Cash is recognised at its nominal amount. Cash and cash equivalents includes:

  1. cash at bank; and
  2. cash in special accounts.

Note 2.1B: Trade and other receivables

2020

2019

$

$

Goods and services receivables

Goods and services

1,091,758

953,949

Total goods and services receivables

1,091,758

953,949

Appropriations receivable:

For existing program

1,857,000

633,000

Departmental capital budget

1,199,000

670,000

Total appropriations receivable

3,056,000

1,303,000

Other receivables

Statutory receivables – GST

0

20,794

Total other receivables

0

20,794

Total trade and other receivables (gross)

4,147,758

2,277,743

Less impairment loss allowance

(21,835)

(14,309)

Total trade and other receivables (net)

4,125,923

2,263,434

Goods and services receivable was with entities external to the Australian Government. Credit terms are net 30 days (2019: 30 days).

Accounting policy

Receivables

Trade receivables, and other receivables that are held for the purpose of collecting the contractual cash flows where the cash flows are solely payments of principle and interest, that are not provided at below-market interest rates, are subsequently measured at amortised cost using the effective interest method adjusted for any loss allowance.

2020

2019

$

$

Reconciliation of impairment allowance

Goods and services

Opening balance

14,308

19,994

Amounts recovered and reversed

981

761

Amounts written off

(2,218)

(8,188)

Increase/decrease recognised in net cost of services

8,764

1,741

Closing balance

21,835

14,308

Note 2.1C: Other financial assets

2020

2019

$

$

Accrued revenue

42,534

559,134

Total other financial assets

42,534

559,134

Total other financial assets are expected to be recovered in no more than 12 months.

Accounting policy

Financial assets are assessed for impairment at the end of each reporting period.

Note 2.2: Non-financial assets

Note 2.2A: Reconciliation of the opening and closing balances of property, plant and equipment and intangibles

Land

Buildings

Leasehold improvements

Property, Plant and Equipment

Computer software1

Other intangiblesTrademarks

Total

$

$

$

$

$

$

$

As at 1 July 2019

Gross book value

9,750,000

18,349,717

256,275

13,192,263

4,045,525

3,200

45,596,980

Accumulated depreciation, amortisation and impairment

0

0

(181,833)

(2,848,681)

(3,089,044)

(65)

(6,119,623)

Total as at 1 July 2019

9,750,000

18,349,717

74,442

10,343,582

956,481

3,135

39,477,357

Recognition of right of use asset on initial application of AASB 16

634,201

Adjusted total as at 1 July 2019

9,750,000

18,983,918

74,442

10,343,582

956,481

3,135

40,111,558

Additions:

Purchase

0

169,530

0

1,049,920

166,359

0

1,385,809

Revaluations and impairments recognised in other comprehensive income

(290,000)

350,026

0

0

0

0

60,026

Depreciation and amortisation

0

(1,082,273)

(74,442)

(1,632,150)

(407,815)

(320)

(3,197,000)

Depreciation on right-of-use assets

0

(240,020)

0

0

0

0

(240,020)

Other movements of right-of-use assets

0

14,357

0

0

0

0

14,357

Disposals:

Write-offs

0

0

0

(5,908)

(122,502)

0

(128,410)

Total as at 30 June 2020

9,460,000

18,195,538

0

9,755,444

592,523

2,815

38,006,320

Total as at 30 June 2020 represented by:

Gross book value

9,460,000

18,195,538

256,275

14,193,608

4,071,025

3,200

46,179,646

Accumulated depreciation, amortisation and impairment

0

0

(256,275)

(4,438,164)

(3,478,502)

(385)

(8,173,326)

Total as at 30 June 2020

9,460,000

18,195,538

0

9,755,444

592,523

2,815

38,006,320

Carrying amount of right-of-use assets

408,538

1. The carrying amount of computer software included $312,285 purchased software and $280,238 internally developed software.

There were no indicators of impairment found for property, plant and equipment.

No property plant and equipment or intangibles are expected to be sold or disposed of within the next 12 months.

Revaluations of non-financial assets
All revaluation were conducted in accordance with the revaluation policy as stated in this note. On 30 June 2020, an independent valuer conducted revaluations of land and buildings.

Accounting policy

Assets are recorded at cost on acquisition except as stated below. The cost of acquisition includes the fair value of assets transferred in exchange and liabilities undertaken.

Assets acquired at no cost, or for nominal consideration, are initially recognised as assets and income at their fair value at the date of acquisition, unless acquired as a consequence of restructuring of administrative arrangements. In the latter case, assets are initially recognised as contributions by owners at the amounts at which they were recognised in the transferor’s accounts immediately prior to the restructuring.

Asset recognition threshold

Purchases of property, plant and equipment are recognised initially at cost in the Statement of Financial Position, except for purchases costing less than $2,000, which are expensed in the year of acquisition (other than where they form part of a group of similar items which are significant in total).

Lease Right of Use (ROU) Assets

Leased ROU assets are capitalised at the commencement date of the lease and comprise of the initial lease liability amount, initial direct costs incurred when entering into the lease less any lease incentives received. These assets are accounted for by Commonwealth lessees as separate asset classes to corresponding assets owned outright, but included in the same column as where the corresponding underlying assets would be presented if they were owned.

On initial adoption of AASB 16 ARPANSA has adjusted the ROU assets at the date of initial application by the amount of any provision for onerous leases recognised immediately before the date of initial application. Following initial application, an impairment review is undertaken for any right of use lease asset that shows indicators of impairment and an impairment loss is recognised against any right of use lease asset that is impaired. Lease ROU assets continue to be measured at cost after initial recognition in Commonwealth agency, GGS and Whole-of-Government financial statements.

Revaluations

Following initial recognition at cost, property plant and equipment (excluding ROU assets) are carried at fair value (or an amount not materially different from fair value) less subsequent accumulated depreciation and accumulated impairment losses. Valuations are conducted with sufficient frequency to ensure that the carrying amounts of assets do not differ materially from the assets’ fair values as at the reporting date. The regularity of independent valuations depends upon the volatility of movements in market values for the relevant assets.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reverses a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the surplus/deficit except to the extent that they reverse a previous revaluation increment for that class.

Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset restated to the revalued amount.

Independent valuers from the Jones Lang LaSalle Advisory Services Pty Ltd conducted a desktop valuation of land and buildings on 30 June 2020.

Revaluation decrement of $290,000 for land (decrement 2019: $750,000) and increment of $350,026 for buildings on freehold land (2019: $787,100) were transferred to the asset revaluation reserve surplus by asset class and included in the equity section of the statement of financial position.

Depreciation

Depreciable property plant and equipment assets, are written-off to their estimated residual values over their estimated useful lives to ARPANSA using, in all cases the straight-line method of depreciation.

Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2020

2019

Buildings on freehold land

16 years

17 years

Leasehold improvements

Lease term4 years

Lease term – 4 years

Plant and equipment

1 to 45 years

1 to 45 years

The depreciation rates for ROU assets are based on the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term.

Impairment

All assets were assessed for impairment at 30 June 2020. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if ARPANSA were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

Derecognition

An item of property, plant and equipment is derecognised upon disposal or when no further future economic benefits are expected from its use or disposal.

Intangibles

ARPANSA's intangibles comprise purchased software, internally developed software for internal use and trade marks. These assets are carried at cost less accumulated amortisation and accumulated impairment losses.

Intangibles are amortised on a straight-line basis over their anticipated useful life. The useful lives of ARPANSA's intangibles are 1.7 to 12.6 years (2019: 1.7 to 12.6 years).

All intangibles assets were assessed for indications of impairment as at 30 June 2020.

Note 2.2B Inventories

2020

2019

$

$

Inventories held for sale

Finished goods

14,164

10,248

Total Inventories held for sale

14,164

10,248

Inventories held for distribution

1,595,395

1,478,156

Total inventories

1,609,559

1,488,404

During 2019–2020, $21,843 of inventory held for sale was recognised as an expense (2018–19: $43,658).

During 2019–2020, $30,417 of inventory held for distribution was recognised as an expense (2018–19: $42,105).

All inventory is expected to be sold or distributed in the next 12 months.

Accounting policy

Inventories held for sale are valued at the lower of cost and net realisable value.

Inventories held for distribution are valued at cost, adjusted for any loss of service potential.

Note 2.2C: Other non-financial assets

2020

2019

$

$

Prepayments

509,910

427,606

Total other non-financial assets

509,910

427,606

No indicators of impairment were found for other non-financial assets.

Note 2.3: Payables

Note 2.3A: Suppliers

2020

2019

$

$

Trade creditors and accruals

743,736

756,002

Total suppliers

743,736

756,002

Settlement is usually made within 30 days.

Note 2.3B: Other payables

2020

2019

$

$

Salaries and wages

281,017

156,300

Superannuation

38,439

18,130

Unearned income

425,976

806,421

Demolition and remediation

0

288,461

Statutory payable – GST

644

0

Other

46,970

33,522

Total other payables

793,046

1,302,834

Note 2.4: Interest bearing

2020

2019

$

$

Leases

Lease liabilities

412,036

0

Total leases

412,036

0

Total cash outlay for leases for the year ended 30 June 2020 was $245,988.

Accounting policy

Refer to Overview section for accounting policy on leases.